Hundreds of employees were laid off following the announcement that a budget airline had gone into administration. PLAY, an Icelandic airline based in Reykjavík, confirmed its closure on September 29 last year. The carrier stated on its website that all flights were canceled. Reports from local media outlet RUV indicated that approximately 400 workers were affected by the company’s closure, with efforts being made to compensate them. The exact status of wage payments to the impacted staff remains uncertain.
Established in July 2019, PLAY commenced operations in June 2021 from Keflavík International Airport in Reykjavik, offering flights to various European destinations such as Alicante, Tenerife, London, Paris, Copenhagen, and Berlin. The airline also provided services between London and Reykjavík, although ticket sales beyond November 1 were halted before the shutdown was announced.
In a statement issued by PLAY’s board in September, it was disclosed that the decision to cease operations was due to the company’s underperformance, low ticket sales, negative media coverage, and internal disputes among employees regarding strategic changes. The board highlighted that previous adjustments in the business model failed to yield the expected results, leading to the airline’s financial difficulties. They expressed regret that these corrective actions were not implemented sooner to avert the crisis.
